Stats RM_ 057 02- 4. Insurance works because of the _Quoting principle, by which the losses of a few policyholders are spread over the entire group. 5. The people who are designated to receive the death benefits of the insured, such as a spouse or children, are referred to as the a. underwriters b. actuaries C. policyholders d. beneficiaries 6. A toaster your company produces has a defect that causes it to burn counter tops in the homes where it is re it is used. Such losses would generally be covered by this type of insurance. a. Professional Liability b. Product liability c. General liability d. Boiler and machinery 7. Which of the following is a benefit of insurance to society? a. Increased worry for policyholders b. Higher attorneys' fees c. Higher deductibles d. Indemnification for loss